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UNCLAS SECTION 01 OF 03 MONTERREY 000067
SIPDIS
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGS: SCULETRDECONPGOVMX
SUBJECT: MONTERREY'S UNIVERSAL FORUM OF CULTURES: A HIT LOCALLY, A
BLIP GLOBALLY
REF: A) 07 MONTERREY 783, B) 07 MONTERREY 576
MONTERREY 00000067 001.2 OF 003
(SBU) Summary. A major goal of Nuevo Leon Governor Natividad
Gonzalez Paras has been to change Monterrey from an industrial
town to a center of culture and knowledge. As part of this
transformation, the Governor arranged for Monterrey to host the
2nd Universal Forum of Cultures, a global event taking place
every three years with the purpose of bringing together people
from all over the world to celebrate cultural diversity and
discuss the most pressing issues affecting the world today. The
Forum was held from September 20 to December 8, 2007, with over
1,000 events in and around Monterrey focusing on the themes of
peace, sustainability, cultural diversity and knowledge. The
Monterrey Forum was mired in controversy early on due to
mismanagement and expenditures that greatly exceeded the
original budget. State officials promised that the Forum would
bring the city increased revenues in tourism and commerce with
an expected number of two million visitors. In the end, the
Forum drew twice that, with over four million visitors, but the
visitors were primarily local and regional. Further, the Forum
has left new civic infrastructure in place: a riverwalk, museums
and other attractions. However, it is striking that the entire
effort was focused on holding the Forum, and little thought was
given to the possible use of the Forum structures after closure.
It remains to be seen whether the Forum will have any long-term
benefits for Monterrey in terms of increased tourism or economic
development. End Summary.
¶2. (U) The concept of the Universal Forum of Cultures
started with the idea of creating an intellectual and cultural
dynamic event of global proportion, with UNESCO becoming an
official partner to this effort in 1999. In 2004, the first
Universal Forum of Cultures was held in Barcelona, Spain.
Thereafter, Monterrey was chosen as the site for the second
Forum, beating out other cities, such as Naples, Italy and
Valparaiso, Chile.
Monterrey's Version of the Forum
-----------------------------------------
¶3. (U) Monterrey pushed hard to host the 2nd Forum. It became
a pet project of Governor Natividad Gonzalez, in line with his
goal of transforming Monterrey into an 'International City of
Knowledge' (reftels A and B). As such, whereas the Barcelona
Forum dealt with the themes of peace, sustainability, and
cultural diversity, Monterrey added a fourth theme of knowledge.
It was also decided that entrance to the parks and to most
events would be free to increase accessibility for all people.
Monterrey chose Fundidora Park, in the heart of the city, as the
main Forum site.
¶4. (U) The Monterrey Forum was open for 80 days, and the program
consisted of dialogues, exhibitions and cultural expressions.
In all, 800 dialogues on 12 topics encompassing the main Forum
themes were held. The dialogues featured 350 speakers from five
continents and were intended to be interactive. For the
exhibitions, sixteen were organized in various parks, museums
and exhibit halls. They included ones on Frida Kahlo, Buddha,
American Immigration, and Isis and the Plumed Serpent (a
collection of ancient Egyptian and pre-hispanic Mexican
artifacts). The Cultural Expressions consisted of numerous
concerts and cultural performances. In all, the Forum brought
to Monterrey 2,300 artists representing 77 countries and 450
international figures, such as Rigoberta Menchu and Mario Vargas
Llosa.
Big Promises Followed by Low Expectations
--------------------------------------------- ---------
¶5. (U) The promoters of the Monterrey Forum expected two
million visitors, and although the main targeted audience was
youth and university students, Forum officials and local
politicians promised the Forum would draw hundreds of thousands
of international visitors as well (reftel B). They also
promised substantial local economic benefits due to increased
hotel and restaurant sales and pledged that the Forum would help
transform Monterrey's international image.
¶6. (SBU) During the run-up to the event, local critics sniped
about the event's expense and alleged mismanagement of public
funds. The Forum was budgeted for US$270 million, including
US$90 million in federal funds, including new infrastructure to
the tune of US$130 million. Yet early on, controversy brewed as
word of mismanagement and wasteful expenditures spread (reftel
B). Gaston Melo Medina, the first Forum administrator, was
accused of, and largely perceived to be, guilty of poor
management at best and outright corruption at worst. Local
National Action Party (PAN) delegates brought a petition before
MONTERREY 00000067 002.2 OF 003
the Public Ministry against him and pushed for an audit, but
this was rejected by the PRI-led state government. On November
30, 2007, days before the Forum's closure, Melo was exonerated
by state officials. However, the decision was largely perceived
to be a political one in order to save face for the Governor.
Yet, the many accusations and considerable controversy in the
two years leading up to the Forum led many to believe that the
proposed infrastructure would not be ready in time and that the
Forum would fail. In addition, the upsurge in narco-related
violence in Nuevo Leon in 2007 led many to fear that the Forum
would be a tempting target for organized crime, with some
envisioning an eventual bloodbath.
¶7. (SBU) In October 2006, Melo was replaced by Othon Ruiz
Montemayor, a well-respected scion from the local business
community. Ruiz had less than one year to clean up the mess
left behind, find sponsors, complete the infrastructure, and
turn the public's negative perception around. In a scramble,
the Forum organizers managed to secure 13 big sponsors who gave
between one to 2.5 million USD. Among the sponsors were such
heavyweight companies such as Cemex, Femsa, Telmex, Maseca,
Bancomer and Banorte. Only one, HBO, was a non-Mexican company.
A Forum official charged with collecting sponsorships noted
that it was impossible to solicit sponsorships at that late date
from foreign corporations and so private funding fell far below
expectations.
Positive Reviews but a Questionable Legacy
--------------------------------------------- --------
¶8. (SBU) Despite the bad press and to the general public's
surprise, the Forum organizers succeeded in completing the
infrastructure in time. This included an expansion of Parque
Fundidora with the Paseo Santa Lucia, an artificial river based
on the concept of San Antonio's Riverwalk. An elegantly
designed walkway measuring 5 kilometers now surrounds the river
offering pedestrians an open public space unlike any other in
Monterrey. New museums and an exhibit hall were also created.
The new infrastructure has received very positive reviews from
the public, business community, and local press. It's seen as a
welcome and worthwhile investment for the city. Nevertheless,
the total cost of the Forum is estimated to be over US$475
million, with the infrastructure costing about US$354 million.
Final budget figures are still being prepared and will be
presented to the General Counsel charged with overseeing the
Forum. Forum officials claim they broke even in the end.
However, this is hard to believe since few sponsors were found,
and the estimated total cost was nearly double the original
budget. Indeed, Nuevo Leon has shown the strain, as there have
been public reports of a number of infrastructure projects
delayed in 2008 due to lack of funds.
¶9. (SBU) Over the course of 80 days, the Forum drew about 4.5
million visitors, more than double the expected number and
considerably larger than the 3.5 million that visited the
Barcelona Forum. However, the majority of the visitors were
locals. According to state officials, only about 20% of the
visitors were from outside of Nuevo Leon, and of those, most
were from neighboring states. Nuevo Leon officials estimate
that about 40,000 were estimated to be foreigners, mostly from
the U.S. (Texas), and the rest from Spain and Italy. Econoffs
took several trips to the Forum, confirming that this was
predominately a Northern Mexican event, with extremely few
foreigners attending. Yet, it was widely observed that the 4.5
million visitors represented all socio-economic levels. This is
unusual given Monterrey's economically-stratified society, where
the upper class rarely mixes with the lower class. In addition,
no incidents of crime, vandalism or accidents were reported at
the Parque Fundidora throughout the entire event. Among the
most popular attractions were the cultural exhibits such as
Frida Kahlo and Isis, which drew large crowds and wait times
that averaged two hours. The dialogues, on the other hand, were
poorly attended. Though most agreed that the concept and
content of the dialogues were good, they were plagued with
ticketing errors early on, as well as poor promotion and
scheduling. A survey of Consulate contacts found that few had
attended a dialogue, although almost all had been to an
exhibition or performance.
¶10. (SBU) Despite the large number of participants and overall
positive reviews, it does not appear that the Forum will deliver
the promised economic boom. Figures from the Nuevo Leon Hotel
and Motel Association show that hotel occupancy increased only
7.5 to 8% during the Forum, with an average 75% occupancy level.
Yet, the owner of the Monterrey Howard Johnson and Four Point
Sheraton noted that occupancy levels were better when the
Rolling Stones visited in March 2006. Restaurant sales, which
MONTERREY 00000067 003.2 OF 003
were expected to increase by at least 10%, were also
disappointing with only a 4-7% increase; although those closest
to the main Forum site were up 50%. On the other hand, the
Director of Parque Fundidora, Eric Jurgensen, noted that in
addition to the large turnout during the Forum, the park has
seen a 120% increase in visitors in the first month since its
closure. However, the popular Isis exhibit ran 6 weeks longer,
pushing up these numbers. Monterrey now has additional tourist
attractions, but it still is not a tourist destination.
Nevertheless, state officials expect that business travelers may
now stay an additional day to see the city.
¶11. (SBU) A possible negative side effect of the Forum is the
delay in other city infrastructure projects. The staggering
cost of the Forum seems to have left little in the state and
city budgets for other intended projects, such as the extension
of the Monterrey metro, amplification of major avenues, and the
construction of a new security building. Moreover, the original
Forum budget did not include a separate allotment for the
continued maintenance of the new infrastructure after the
Forum's closure. Meetings with several Forum officials revealed
that there is currently no plan for how the new spaces will be
used in the future or who will pay for their upkeep. Some
suggested that a private-public partnership will need to be
formed to manage the buildings, but gave no specifics on who,
how or whether any proposals have been put forward. Others
suggested that some, if not most, of the new spaces would be
self-sustaining, such as the Paseo Santa Lucia. Yet, currently
there is little commercial development there, with only three
restaurants on the Riverwalk. Though the idea is to follow the
model of San Antonio's Riverwalk by continuing to develop the
park, there is no specific plan on how to go about doing this
and no one seems to be charged with coming up with one.
¶12. (SBU) Overall, the Forum was viewed as a success in the end,
even by those who had turned against it, such as business
community leaders. The general perception seems to be the Forum
has helped to change Monterrey's image from an industrial,
provincial town to a more sophisticated, cosmopolitan one.
Roberto Cavazos, President of Monterrey's American Chamber of
Commerce, remarked that the Forum 'was a spark, a beginning' for
a city in transformation. As for the expected deluge of foreign
tourists, there appears to be little concern that they never
really materialized. Forum officials have since downplayed the
promise that the event would attract many foreigners. In a
meeting with Jorge Salazar Tamez, one of the Forum directors, he
stated that 'The idea was not to bring Monterrey to the world,
but to bring the world to Monterrey.'
Comment:
-----------
¶13. (SBU) Comment. For Governor Natividad, the Forum's success
may be a legacy he can claim as part of his political career.
For Monterrey, it remains to be seen whether the Forum will have
any lasting effects. Given all the problems in putting the
Forum together, very little attention was given to anything
beyond the Forum's closure. The fact that funding for the
continued maintenance of the new buildings and public spaces was
not included in the Forum budget could mean that the Forum's
success will turn out to have been short-lived. Those involved
with putting the Forum together and ensuring its success have
since moved on to better things, or back to their regular jobs.
Aside from those still working on the final budget figures,
Forum officials appear to have wiped their hands clean of the
event. Even those responsible for the promotion of the event,
at a cost of over 6 million USD, have not bothered to take down
the large posters and other advertisements that still blanket
the city two months after the event's end. Finally, since
Governor Gonzalez Paras' term ends in 2009, unless the Forum
structures are truly self-sustaining, it is unclear if they will
be supported beyond that time. End Comment.
WILLIAMSON